The Study About Effect Paths Of Financial Development To Economic Growth In Fujian

Modern market economy is highly credit and monetized and financial market is an important part of the modern market economy. Accurately grasping the effect paths of financial development on economic growth can effectively carry out the rational allocation of financial resources, and then promoting the regional economic growth. This paper’s frame is the endogenous growth theory. Combining the current status of financial development and economic growth of Fujian explored and empirical analyzed the effect paths of financial development on economic growth in Fujian in order to provide a basis reference for financial development of Fujian how to better promote the economic growth.Firstly, on the basis of researching the financial development theory, this paper from the perspective of the endogenous economic growth analyzed the financial development how to promote the economic growth by capital accumulation, covering material capital and human capital and technological advance and other mechanisms. Then, combining the current status of financial development and economic growth of Fujian and the characteristics of Fujian bank-based financial system analyzed the effect paths of financial development on economic growth by the method of the empirical analysis. Empirical part was based on the following three logical: First, the paper analyzed the relationship between financial development and economic growth of Fujian; Second, on the basis of the determination of Fujian’s financial development having a promotional effect on the economic growth, this paper built the model of the endogenous economic growth to study the impact of financial development on the economic growth factors in Fujian; and third, the paper used the intermediary test method to verify whether the financial development in Fujian through the material capital, human capital and technological advance and other paths had a promoting effect on economic growth; The empirical results showed that Fujian’s financial development could promote the economic growth by the paths of material capital, human capital, technological advance and so on, in which the accumulation of material capital was the main path of the effect of financial development to economic growth and human capital accumulation was second, while the weakest influence was the technological progress. Financial development was primarily to promote the material capital, human capital and technological advance from the scale. To a certain extent, the financial efficiency had an inhibitory effect on the human capital accumulation and technological progress, but financial scale’s promoting effect was greater than the financial efficiency’s inhibition.In the end, On the basis of the theoretical and empirical research results, the paper put forward the policy recommendations from the view of the financial system investment on the material capital, human capital and technological advance and the effectt paths of financial development to economic growth in Fujian.